Self managed property system

Did you know that rent rolls are valuable and can be sold. Maybe you could get a few friends together, do the real estate course and get licenced. You can then sell the roll – you will get around 1 to 2 times the annual income.

eg. if you had 6 properties renting for $400 pw = $28800 pa. in rent. at 8% management fees = $2304. sell at 2 times = $4608.

It may not be much, but imagine if you had 20 properties or even 50 properties.

 were to move in that direction, I'd like to have an understanding of how other people manage their properties? Is there a system or process that others use or does each person make up their own system.

_____________________________________________________

Cobo Condos 

Chicago Condos

DamienO,

Before going down that path make sure you have a full understanding of your legal requirements.  If self managed are you prepared and do you have time to attend tribunal hearings, court cases, apply for and serve eviction notices etc if you have a problem with a tenant?  It might appear a good way to save money not having to pay a property manager but do you really want the extra hassles that comes with it?  Are you the sort of person who can walk up to a single mother with 2 kids and serve an eviction notice?  If not then be careful of self management or only rent to people you don't mind evicting.

DamienO,

Also the best deal doesn't mean lowest price. 

Try to find a place that charges a % that covers everything and not a place with add extras for postage and handling etc.  Also check how many staff compared to renters roll.  If not enough staff then the property managers are over worked and don't have enough time to check things thoroughly.  You may also ask to see examples of their inspections reports and fees charged for reletting or renewal of leases.  Some companies push 6 month leases telling you you can put the rent up at the end of each lease but what most really want to do is charge you a fee (can be 1 weeks rent)  for getting the tenant to sign a new lease.

Hi DamienO

If you live in the area and do your research, property management isn't too difficult. Mind, there is a lot of work involved if things go wrong. Always screen your tenants carefully and keep records of all conversations/correspondence. You also need to be well read in terms of the Tenancy ACT and relevant policies in your state. I currently manage my two local IP's and have a property manager manage my other non-local IP. To keep track of the rent and expenses – I simply use an excel spreadsheet. Both rent's come in fortnightly for a fixed amount – so I use the one account and simply check via online banking that the payment has gone in each fortnight. I also record all expenses in the same spreadsheet – makes it very straight forward at tax time. For the non -local I get a statement sent to me which essentially contains all the information i keep in my spreadsheet for the 2 local IP's – but costs me $80+ in management fees each month…if you have the time to manage the properties – I say more power to you! Just know your rights (or lack of) and do your research. Best of luck

Wow, SophieJones it sounds like you've been very lucky  –  or the positive karma thing is working out for you!
I don't yet own any IPs but I have a more cautious view of human nature!